This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Understanding Oracle's Growth Position

NEW YORK ( TheStreet) -- There is no shortage of critics when it comes to assessing the market position of database giant Oracle (ORCL - Get Report).

With rivals such as (CMR) stealing the hearts of growth investors, it seems the value that Oracle still presents today is suddenly being ignored. The company is now considered irrelevant.

But Oracle's fundamentals as well as its extensive reach within the market tells a different story. With its $32 billion in cash and innovative expertise, the company continues to prove that it has no plans to concede its business to anyone. Investors would be wise to take notice.

A Balanced First-Quarter Start

In its most recent quarter, $8.2 billion in revenue was not enough to excite investors. But it did represent a modest 3% annual growth. Net income arrived at $2 billion, or $0.41 per share, representing a profit increase of 11% year-over-year. On a non-GAAP basis, the company produced $3.6 billion in operating income, or 6% higher from the year ago quarter. This was helped by the company's 2% improvement in operating margin, which arrived at 44%.

The company continues to see increasing demand for its products and services, particularly in the cloud, which produced $222 million in revenue. Likewise, software licenses and cloud subscription revenue grew 11% to $1.6 billion.

As a sign of how well the company's model is working, Oracle continues to generate tons of cash, while consistently managing its expenses.

Oracle also announced record levels of free cash flow -- $13.4 billion over the past four quarters. Similarly, during that span, operating cash flow increased to $14 billion, of which, $5.7 billion was generated in the just completed quarter. As a sign of its commitment to returning value to shareholders, Oracle announced it purchased over 100 million shares of its stock during the quarter.

This brought its stock repurchase total to 300 million shares, or $8.2 billion worth over the past 12 months. In terms of guidance for the coming quarter, Oracle expects to earn between 59 cents to 63 cents per share on a non-GAAP basis, exceeding last year's mark of 54 cents per share.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ORCL $39.29 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs